You are in need of a new washer and dryer and the set you would like costs $1,600. You do not have access to enough cash to pay for the washer and dryer in full at time of purchase and are exploring your financing options. You have seen the following advertisement on television: GE APPLIANCES 4.5 cu. ft. HE Top Load Washer & 7.4 cu. ft. Electric Dryer SKU: COGESEL Own it in 24 months, No Credit Needed! Monthly Payment $99.99/mo." Today's Payment: $10.00 Delivery & Setup FREE Service & Repair INCLUDED START MY LEASE Help? Live Chat 877-496-1609 Delivery Location 18940 Change What's Included: Washer(1), and Electric Dryer(1) You are selecting an electric dryer Be sure you dont have gosconnections Paying $100 a month will work with your budget. You also have that emergency credit card in your wallet that charges 24% annually compounded monthly. Which of these two methods of financing would be your best option? Your Mission: Evaluate the two financing options and decide which one is better for you. Include the following in your report: 1. The decision criteria you used to make your decision (such as effective interest rate). 2. The calculation of your decision criteria for each alternative. 3. The decision you made and why you made it. 4. Any assumptions you felt you needed to compare the alternatives. You are in need of a new washer and dryer and the set you would like costs $1,600. You do not have access to enough cash to pay for the washer and dryer in full at time of purchase and are exploring your financing options. You have seen the following advertisement on television: GE APPLIANCES 4.5 cu. ft. HE Top Load Washer & 7.4 cu. ft. Electric Dryer SKU: COGESEL Own it in 24 months, No Credit Needed! Monthly Payment $99.99/mo." Today's Payment: $10.00 Delivery & Setup FREE Service & Repair INCLUDED START MY LEASE Help? Live Chat 877-496-1609 Delivery Location 18940 Change What's Included: Washer(1), and Electric Dryer(1) You are selecting an electric dryer Be sure you dont have gosconnections Paying $100 a month will work with your budget. You also have that emergency credit card in your wallet that charges 24% annually compounded monthly. Which of these two methods of financing would be your best option? Your Mission: Evaluate the two financing options and decide which one is better for you. Include the following in your report: 1. The decision criteria you used to make your decision (such as effective interest rate). 2. The calculation of your decision criteria for each alternative. 3. The decision you made and why you made it. 4. Any assumptions you felt you needed to compare the alternatives
